Question

Which of the following is not a participant of the securities market?

• A. Issuers
• B. Intermediaries
• C. Investors
• D. SEBI

Hint:

Remember the three main participants: Issuers (who issue securities), Investors (who buy/sell), and Intermediaries (who facilitate). Regulators like SEBI, RBI, or SEC are not participants—they are market watchdogs.

Answer 1

The Correct Option is D

Step 1: Understand the structure of the securities market.
The securities market consists of various entities that participate in the issuance, trading, and settlement of securities. These can be categorized into different groups.

Step 2: Identify the participants vs. regulator.

Participants: Entities that directly engage in securities transactions or provide services for transactions.
Regulator: An authority that oversees and regulates the market without directly participating in transactions.

Step 3: Analysis of each option.

(A) Issuers: This is a participant. Issuers are entities such as companies or governments that issue securities to raise funds from the market.

(B) Intermediaries: This is a participant. Intermediaries include brokers, underwriters, depositories, clearing houses, etc., who facilitate transactions between issuers and investors.

(C) Investors: This is a participant. Investors are individuals or institutions who buy and sell securities for investment purposes.

(D) SEBI: This is NOT a participant. SEBI (Securities and Exchange Board of India) is the regulator of the securities market in India. It does not participate in trading but oversees and regulates all participants to ensure fair practices.

Step 4: Conclusion.
Issuers, intermediaries, and investors are direct participants in the securities market, whereas SEBI acts as the regulatory authority that supervises and regulates the market.

Final Answer: (D) SEBI